Investors complain over 'biased' reporting on RI

A'an Suryana, The Jakarta Post, Jakarta

Several investors have complained about the biased coverage on Indonesia by both local and foreign media, saying that the tarnished image of the country caused by the negative reporting had contributed to the downturn in investments here.

"Indonesia's tarnished image, as has been portrayed by the media, has damaged the business confidence. No wonder Indonesia has hardly rated as a place to do business in the last few years," John Arnold, chairman of the British Chamber of Commerce's mission in Indonesia, said during the "Indonesia's Image: Media Myth and Reality" seminar on Thursday.

Arnold said that the biased reporting started in 1997 following the multidimensional crisis that hit the country. Since then, Indonesia has been perceived as a country struggling to find itself, rife with ethnic and religious tensions and conflicts, and the collapse of law enforcement and widespread breaking of contracts with impunity.

"None of us could convincingly argue that there is no basis for these images," he said.

Arnold said that the media had helped create and establish the image, not because of misreporting, but more because of selective reporting.

He called on the media to be more balanced in reporting events in Indonesia and not to focus only on security, scandalous and political issues. The coverage of these issues could bring losses to the country's investment climate.

Citing an example, Arnold pointed to the Tangguh LNG project being developed by BP Indonesia in Papua, about which the media has focussed on the risk of environmental damage and the failure to secure the first major sales contract with southern China.

"There is little (coverage) on the potential economic benefits that will flow into Papua and Indonesia as a whole," he said.

Executive director of Goldman Sachs-Singapore Gita Wirjawan shared Arnold's view, saying that the media had created a perception of Indonesia as identical with uncertainty and disarray since several years ago.

This would surely impact foreign confidence in Indonesia, as investors would still refer to the biased reporting because of the existing uncertainty in the country.

"Since we are entering the pre-election cycle, there is a relatively high degree of uncertainties, including the broader issue of the capability of Jamaah Islamiyah (JI) terrorism cells in Indonesia. These uncertainties seem to have slowed down the return of capital flights and put additional business investments on hold," Gita said in the seminar.

Arnold urged the government to learn how to build a good relationship with the media in order to create a better image for investment.

"When a potentially embarrassing news event breaks, which will negatively impact the government, there is often a tendency to react with hastily staged press conferences. Platitudes, unconvincing statements or denials will be communicated. Then life goes on," said Arnold.

Another speaker at the seminar, Damien Kingsbury, a lecturer at Deakin University in Australia, acknowledged that Indonesia was vulnerable to the unbalanced coverage.

However, he defended the media, saying that the biased reporting was actually part of the media's efforts to do good for society as a whole.

"The media has a duty as a watchdog, in alerting the public to current problems and calling on the government and other relevant institutions to be accountable," he said.